Commodities July 23, 2026 08:43 AM

India's Refinery Throughput Inches Up in June as Imports Decline and Shipments Face Disruptions

Provisional government data show a 1% month-on-month rise in refining activity to 5.44 million bpd, while import volumes fall and tanker movements are disrupted in the Red Sea

By Leila Farooq
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India's crude processing at refineries rose by 1% in June from the previous month to 5.44 million barrels per day, equal to the level recorded a year earlier. The increase translated to 22.26 million metric tons processed. At the same time, imports fell by more than 12% from May to 19.59 million metric tons, and several shipments were interrupted amid security concerns in regional waters.

India's Refinery Throughput Inches Up in June as Imports Decline and Shipments Face Disruptions
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Key Points

  • Refinery throughput rose 1% in June to 5.44 million barrels per day, equal to the level in June 2025 - impacts refining and downstream fuel supply.
  • India processed 22.26 million metric tons of crude in June versus 22.05 million metric tons in May - relevant to refining margins and refinery utilization rates.
  • Three tankers with over 95,000 metric tons of Saudi crude turned back in the Red Sea and key companies cancelled liftings, affecting oil import logistics and shipping sectors.

Summary

Provisional government figures show India’s refinery throughput rose modestly in June, while imports contracted and a handful of tanker movements were reversed amid heightened security risks in nearby waters. The data underline a mixed picture for the country’s crude supply chain, with refining activity steady year-on-year but physical cargo flows under strain.


Throughput details

India’s refineries processed 5.44 million barrels per day in June, an increase of 1% from May, according to provisional government data. That June throughput corresponds to 22.26 million metric tons of crude.

For comparison, the preceding month saw refineries handling 5.21 million barrels per day, or 22.05 million metric tons. The June throughput level matched the 5.44 million barrels per day recorded in June 2025.


Shipments and security

Separately, three oil tankers carrying in excess of 95,000 metric tons of Saudi crude bound for India were reported to have turned back in the Red Sea on Tuesday. The move occurred as Yemen’s Houthi militia imposed a naval blockade against Saudi Arabia.

Heightened maritime risk also prompted commercial decisions. Indian Oil Corp cancelled the planned lifting of Iraqi crude from the Basrah Oil Terminal, citing increased risk and attacks on vessels transiting the Strait of Hormuz. Mangalore Refinery and Petrochemicals Ltd likewise called off an operation to pick up oil from Iraq using the Indian-flagged Aframax tanker Desh Gaurav, the company said.


Import volumes

Government data show India’s crude oil imports in June fell by more than 12% from May, arriving at 19.59 million metric tons for the month. The drop in inbound volumes comes alongside the operational disruptions and safety concerns reported for certain shipments.


Context and implications

While refinery throughput edged up month-on-month and remained level with the prior year, the combination of reduced import volumes and interrupted tanker movements highlights ongoing logistical and security pressures on India’s crude supply chain. The provisional nature of the government figures means they may be subject to later revision.

Risks

  • Maritime security risks in the Red Sea and Strait of Hormuz - this affects tanker routing, insurance costs, and crude delivery schedules for importers and refiners.
  • Reduced import volumes in June - lower inbound crude could pressure refinery feedstock availability and influence fuel supply dynamics.
  • Company-level cancellations of liftings - commercial exposures and short-term procurement disruptions for refiners and trading desks handling Iraqi and Saudi crude.

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